Archives: Arbitration

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A Tale Of Dirty Deals, Demurrage And Discontent: Enforcement Of Arbitral Award Refused

In a recent decision, the Paris Court of Appeal refused to enforce an LMAA arbitral award on the basis that the underlying contract was affected by illegality on account of corruption. Introduction Pursuant to article V of the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, a national authority may … Continue Reading

The importance of the arbitration notice: make sure it is sent to the right person

Sino Channel Asia Ltd v. Dana Shipping and Trading Pte Singapore and Another [2016] EWHC 1118 (Comm) A recent English High Court decision serves as a reminder of the importance of taking great care in relation to service of notice to commence arbitration. The case concerned whether the notice was sent to the correct party. … Continue Reading

The Global Santosh: The Supreme Court provides guidance on a charterer’s responsibility for its agents

NYK Bulkship (Atlantic) NV (Respondent) v Cargill International SA (Appellant) (“The Global Santosh”) [2016] UKSC 20 (overturning the Court of Appeal [2014] EWCA Civ 403) The Supreme Court last week handed down an important decision concerning the issue of when a charterer will be held responsible for its agents under a charterparty. Contractual position NYK … Continue Reading

Don’t trip up – a warning for owners

The recently decided case of SBT STAR BULK & TANKERS (GERMANY) GMBH & CO KG V COSMOTRADE SA (THE “WEHR TRAVE”) [2016] EWHC 583 (Comm) in the Queen’s Bench Division of the Commercial Court and before The Hon Sir Bernard Eder will, perhaps, come as a surprise. This was an appeal pursuant to section 69 … Continue Reading

Mitigation and the assessment of damages on early redelivery – “The New Flamenco”

Mitigation and the assessment of damages on early redelivery – “The New Flamenco”[1] Assessing the level of damages recoverable following the early redelivery of a vessel under a time charter can be a complex area of law to navigate, especially when there is no available market at the date of the termination of the charter. … Continue Reading

High Court rules on inconsistency in charterparty arbitration clauses and applicable curial law

Reed Smith (Lianjun Li and Min Li of the Hong Kong office, Nick Shaw and Halani Lloyd of the London office) recently represented the successful Charterers in Shagang South-Asia (Hong Kong) Trading Co. Ltd v Daewoo Logistics [2015] EWHC 194 (Comm). The Respondent Owners chartered their vessel to the Claimant Charterers by a fixture note, … Continue Reading

Tribunal rules on speed and performance claims under two consecutive time charterparties

London Arbitration 18/14 The vessel in question was the subject of two charters on the NYPE 46 form, for one time charter trip under each, with the second charter being in direct continuation of the first. Performance claims Clause 128(1) of each charter provided: “Owners not to be responsible if the vessel under the currency … Continue Reading

Owners validly exercised right to withdraw for non-payment of hire and awarded discounted damages for repudiatory breach

London Arbitration 19/14 Two new buildings were let by Owners to Charterers on an amended NYPE form for a period of about 35 months up to 37 months. Hire was to be paid semi-monthly in advance. Clause 55 of the charter allowed Owners to withdraw for non-payment of hire after the expiry of three clear … Continue Reading

Tribunal rules on incorporation of arbitration agreement into a charterparty and Owners’ entitlement to demurrage

London Arbitration 14/14 The vessel in question was chartered by way of a fixture recap. Owners brought a claim for demurrage against Charterers. Charterers argued that the charter did not contain a valid arbitration agreement/clause, and that although they had agreed to pay freight, they had not agreed to be liable for demurrage. Incorporation of … Continue Reading

Arbitration clause in LOU held to replace charterparty arbitration clause

Viscous Global Investment Ltd v Palladium Navigation Corp [2014] EWHC 2654 (Comm) The Claimants had claims for cargo damage against the vessel Owners arising under four bills of lading. The vessel was the subject of a chain of three charterparties. The head and sub-charter provided for London Arbitration (two arbitrators unless a sole could be … Continue Reading

Tribunal finds that time bar does not apply in circumstances where no cargo was loaded

Also written by Alexander Sandiforth. London Arbitration 10/14 The vessel was the subject of a voyage charter containing the following at clause 11: “Any dispute arising from and in respect of this Charter Party shall be referred to and settled by arbitration in London … Any claims must be made in writing within 3 (three) … Continue Reading

Tribunal finds that lack of adequate mooring facilities meant that a vessel was not “in every way fitted for the voyage”

London Arbitration 11/14 The vessel was the subject of a voyage charter, under which the vessel was not accepted for loading. Owners argued that the rejection amounted to a repudiatory breach by Charterers and claimed damages for that breach plus damages for detention. Charterers argued that it was Owners who were in repudiatory breach, because … Continue Reading

Tribunal comments on validity of NOR and whether laytime stopped running during suspension of loading

London Arbitration 4/14. Facts The subject vessel tendered NOR around 75 miles from the loadport of Matadi. At the time she was stated to be “in Matadi Roads”, but was in fact at Banana pilot station rather than Matadi Port Anchorage. She then proceeded to the port of Boma, where she awaited a change of … Continue Reading

Tribunals have no jurisdiction to hear Owners’ claims for “procuring or inducing” breach of arbitration agreement incorporated into bills of lading

Owners chartered their vessel by way of a charter containing a London Arbitration clause, for a carriage from Turkey to Liberia. The vessel was sub-chartered, and three bills of lading issued to cover the cargo, each naming the same consignee and incorporating the charter terms. The consignee claimed for cargo damage and commenced proceedings against … Continue Reading

Tribunal rules on breach of consumption warranty in NYPE trip time charter

London Arbitration 1/14 The subject vessel, a new build which had just entered service, was chartered on an amended NYPE form for one time charter trip. Clause 29 of the charter, dealing with speed and consumption, provided as follows: “Speed ballast/laden about 15/14 knots on about 39.5 metric tons IFO 380 … Eco-speed ballast/laden about … Continue Reading

Court refuses an application by a party to an ongoing arbitration to prevent its opponents from terminating charters

The Applicants and Respondents in Zim Integrated Shipping Services Ltd v European Container KS [2013] EWHC 3581 (Comm) were parties to an arbitration, in which the Applicants sought to recover loans made to part-fund the Respondents’ purchase of four vessels. The vessels had been sold by the Applicants to the Respondents, then leased back on … Continue Reading

Court can appoint an arbitrator in a shipping dispute where there is a good arguable case

In Five Oceans Salvage Consultants Ltd v Perla Navigation Ltd (unreported), the applicant applied for the court to appoint an arbitrator pursuant to section 18 Arbitration Act 1996. The applicant was the contractor under a Lloyd’s standard form of salvage agreement, which incorporated the Lloyds standard salvage and arbitration clauses. The second and third respondents … Continue Reading
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